|This thesis investigates Initial Public Offerings (IPOs) on the Oslo Stock Exchange the last ten
years (2006-2015). The analysis focuses on short- and long-term aftermarket performance
between companies in the energy sector and other sectors. The energy sector is dominating the
Norwegian IPO market, but few papers examine their performance. In the short run, we find
an average underpricing of 3.08% for the energy sector, which is higher than the other sectors.
The difference in underpricing between them is, however, insignificant. Moreover, when
controlling for other variables, underpricing in the energy sector decreases. In the long run,
energy companies are more overpriced compared to other companies (excluding high-tech). If
the company listed is an energy company, abnormal returns decreases by 10.90%, ceteris
paribus. This means that energy companies perform worse than other companies after six
months of trading. Furthermore, underpricing after first-day of trading is decreasing over the
sample period, and average abnormal returns are negative for most years after the financial
crisis. Long-run overpricing is increasing over the period, which means that IPOs perform
worse today than in previous years. However, we examine a relatively “cold” period, which
may affect our results. As the IPO market is cyclical, IPOs may perform better in the future.